Core Viewpoint - Duke Energy plans to submit an application to build a new natural gas power plant in Anderson County, South Carolina, to meet the growing energy demands of the state due to economic development and population growth [1][2]. Group 1: Project Details - The construction application is expected to be submitted later this year, with construction anticipated to begin in summer 2027 and the plant expected to serve customers by early 2031 [3]. - The facility will be located on nearly 200 acres near Highway 81 South in Anderson County and is designed to provide approximately 1,400 megawatts of electricity [7]. Group 2: Strategic Importance - The project is the first request by Duke Energy to build new generation in South Carolina in a decade and aligns with state leaders' goals to enhance electricity capacity in response to growth [6][8]. - The facility will utilize existing infrastructure and is part of a partnership with GE Vernova to supply natural gas turbines, supporting advanced manufacturing and data centers [7]. Group 3: Community and Leadership Support - Local leaders, including Governor Henry McMaster and Senate President Thomas Alexander, emphasize the importance of reliable energy infrastructure for South Carolina's economic success and future prosperity [8][9]. - Duke Energy's commitment to this project reflects its ongoing partnership with Anderson County and aims to benefit the local economy and community [9]. Group 4: Company Overview - Duke Energy is a major energy holding company serving 8.6 million customers across several states and owns 55,100 megawatts of energy capacity [10]. - The company is focused on an energy transition that includes investments in cleaner generation sources such as natural gas, nuclear, renewables, and energy storage [11].

Core Viewpoint - Duke Energy is enhancing support for storm preparedness initiatives in North Carolina by providing grants to local emergency response organizations, aiming to bolster community resilience against natural disasters [1][3]. Group 1: Grant Details - Duke Energy Foundation is awarding $25,000 grants to twenty government agencies and nonprofits to fund severe weather preparedness measures [2]. - The HERO grants will finance emergency preparedness equipment and first responder training, benefiting 20 essential disaster response organizations [7]. Group 2: Importance of Preparedness - Recent natural disasters have had devastating effects across North Carolina, highlighting the need for collaborative response planning as another storm season approaches [3]. - The Duke Energy Foundation has supported over 100 local emergency response organizations with more than $1.8 million in grant funding over the past five years to enhance storm preparedness [4]. Group 3: Statements from Officials - Kendal Bowman, Duke Energy's North Carolina president, emphasized the importance of proactive collaboration with local emergency response organizations to ensure community preparedness [8]. - Local officials, such as Tommy Batson and Tony Ray, expressed gratitude for the grants, noting their critical role in improving emergency response capabilities and community safety [8]. Group 4: Duke Energy Overview - Duke Energy is a major energy holding company serving 8.6 million customers across several states and owns 55,100 megawatts of energy capacity [10]. - The company is committed to an ambitious energy transition, focusing on electric grid upgrades and cleaner energy generation [11].

Core Viewpoint - Duke Energy Indiana is allocating $200,000 to its Share the Light Fund to assist customers facing financial difficulties during the summer months, aiming to help manage rising energy costs due to increased usage and temperatures [1][2]. Group 1: Financial Assistance - Over the past five years, Duke Energy's Share the Light Fund has provided more than $4 million in assistance, benefiting nearly 15,000 households in Indiana [1][3]. - The fund offers up to $300 to qualifying customers to help cover energy bills, deposits, and reconnection charges, in collaboration with the Indiana Community Action Association [2][3]. Group 2: Community Support - Duke Energy partners with community action agencies to identify customers in need and distribute financial assistance [2][3]. - The initiative aims to alleviate the financial strain caused by high seasonal energy bills for families experiencing economic hardship [3]. Group 3: Company Overview - Duke Energy Indiana is the largest electric supplier in Indiana, providing approximately 6,300 megawatts of electric capacity to around 910,000 customers across a 23,000-square-mile service area [5]. - Duke Energy, a Fortune 150 company, serves 8.6 million customers across multiple states and owns a total of 55,100 megawatts of energy capacity [6]. Group 4: Energy Management Tools - Duke Energy offers various tools and resources to help customers manage their energy use and save money, including usage alerts, free home energy assessments, and flexible payment plans [4][9].

Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated structure that supports stable, long-term income, allowing utilities to recover costs and earn consistent returns, which reduces earnings volatility [1] - The industry is evolving due to a shift toward clean energy, with significant investments in grid modernization, renewable integration, and electrification, reshaping the sector [2] Company Profiles NextEra Energy - NextEra Energy is a leading U.S. utility known for its investments in renewable energy, including wind, solar, and battery storage, driving the clean energy transition [3] - The company operates one of the largest portfolios of wind and solar projects globally and has strong financials and a history of innovation [3] - NextEra Energy's earnings per share (EPS) estimate for 2025 has increased by 0.27% over the past 60 days, with a long-term earnings growth projection of 7.72% [6] Duke Energy - Duke Energy is one of the largest U.S. utilities, aiming to cut carbon emissions by 50% by 2030 and achieve net-zero emissions by 2050, with plans to double renewable capacity by 2030 [4] - The company is investing in modern infrastructure and clean technologies, offering stable, regulated returns with long-term growth potential [4] - Duke Energy's EPS estimates for 2025 remained unchanged, while the 2026 estimates decreased by 0.15%, with a long-term earnings growth projection of 6.33% [8] Financial Metrics - NextEra Energy's current dividend yield is 3.33%, while Duke Energy's is 3.59%, both exceeding the industry average of 3.17% [11] - Return on Equity (ROE) for NextEra Energy is 12.06%, outperforming Duke Energy's ROE of 9.88% and the industry's ROE of 10.13% [12] - NextEra Energy's debt-to-capital ratio is 56.98%, compared to Duke Energy's 60.61%, with the industry's average at 54.57% [14] Valuation and Capital Expenditure - NextEra Energy is trading at a Price/Earnings Forward 12-month ratio of 17.93X, slightly cheaper than Duke Energy's 17.96X, while both are above the industry average of 15.37X [15] - NextEra Energy plans to invest nearly $72.6 billion from 2025 to 2029, while Duke Energy plans to invest $46.6 billion from 2025 to 2027, focusing on infrastructure and clean electricity generation [17] Conclusion - NextEra Energy has a marginal edge over Duke Energy due to its positive earnings estimate movement, better ROE, and cheaper valuation, despite both companies holding a Zacks Rank 3 (Hold) [18]

Core Insights - Duke Energy Corporation (DUK) reported first-quarter 2025 earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.59 by 10.7% and improving 22.2% from $1.44 per share in the same quarter last year, driven by higher retail sales volumes and new rates [1][3] - Total operating revenues reached $8.25 billion, a 7.5% increase from $7.67 billion in the previous year, also surpassing the Zacks Consensus Estimate of $8.06 billion by 2.3% [1][2] Revenue Breakdown - The Regulated electric unit generated operating revenues of $7.06 billion, up 4.9% year over year, contributing 85.6% to total revenues [2] - Revenues from the Regulated natural gas business totaled $1.11 billion, reflecting a significant increase of 27.6% year over year [2] - The Non-regulated Electric and Other segment produced revenues of $80 million, which is a 9.6% year-over-year increase [2] Expense and Income Analysis - Total operating expenses for the quarter were $5.91 billion, up 3.4% year over year, primarily due to increased costs in natural gas, operation, maintenance, depreciation, and property taxes [3] - Operating income rose 19.4% to $2.34 billion from $1.96 billion in the same quarter last year [3] Customer and Sales Metrics - Interest expenses increased to $889 million from $817 million in the first quarter of 2024 [4] - The average number of customers in Electric Utilities grew by 1.7% year over year [4] - Total electric sales volumes increased by 7.6% year over year, reaching 65,242 gigawatt-hours [4] Segment Performance - Electric Utilities & Infrastructure segment earnings totaled $1,276 million, up from $1,021 million in the first quarter of 2024 [5] - Gas Utilities & Infrastructure segment earnings were $349 million, compared to $284 million in the previous year [5] - The Other segment incurred a loss of $260 million, worsening from a loss of $203 million in the first quarter of 2024 [6] Financial Position - As of March 31, 2025, cash and cash equivalents stood at $475 million, up from $314 million on December 31, 2024 [7] - Long-term debt increased to $79.70 billion from $76.34 billion as of December 31, 2024 [7] - Net cash from operating activities for the first three months of 2025 was $2.18 billion, down from $2.47 billion in the same period last year [7] Future Guidance - Duke Energy reaffirmed its 2025 adjusted EPS guidance, expecting a range of $6.17-$6.42, with the Zacks Consensus Estimate at $6.32 per share [9] - The company projects long-term EPS growth of 5-7% through 2029 [9]

Financial Performance - GAAP reported EPS and adjusted EPS for the three months ended March 31, 2025, were $1.76, an increase from $1.44 for the same period in 2024, primarily due to higher retail sales volumes and new rates [361]. - Net income for Progress Energy increased by $111 million to $546 million for the three months ended March 31, 2025 [384]. - The net income for the three months ended March 31, 2025, was $1,404 million, an increase of $253 million from $1,151 million in the prior year [423]. Revenue and Sales Growth - Operating revenues for Electric Utilities and Infrastructure segment increased to $7,140 million for the three months ended March 31, 2025, compared to $6,803 million in 2024, reflecting a variance of $337 million [366]. - Operating revenues for Duke Energy Carolinas increased by $117 million to $2,524 million for the three months ended March 31, 2025, compared to $2,407 million in 2024 [379]. - Duke Energy Progress reported operating revenues of $2,018 million for Q1 2025, an increase of $230 million (12.9%) compared to $1,788 million in Q1 2024 [390]. - Duke Energy Florida's operating revenues were $1,444 million in Q1 2025, a slight increase of $8 million (0.6%) from $1,436 million in Q1 2024 [394]. - Duke Energy Ohio's total operating revenues reached $766 million in Q1 2025, an increase of $88 million (13.0%) from $678 million in Q1 2024 [400]. - Duke Energy Indiana reported operating revenues of $858 million in Q1 2025, up $99 million (13.0%) from $759 million in Q1 2024 [404]. - Piedmont's operating revenues increased to $857 million in Q1 2025, a rise of $181 million (26.8%) compared to $676 million in Q1 2024 [410]. Operating Income and Expenses - Segment income for Electric Utilities and Infrastructure was $1,276 million for the three months ended March 31, 2025, up from $1,021 million in 2024, representing an increase of $255 million [366]. - Operating income for Duke Energy Carolinas rose by $98 million to $703 million, driven by higher pricing and improved weather conditions [379]. - The total operating expenses for Duke Energy Progress were $1,540 million in Q1 2025, up $155 million (11.2%) from $1,385 million in Q1 2024 [390]. - The increase in operating expenses for Duke Energy was primarily driven by a $142 million rise in the cost of natural gas due to higher rates and volumes [375]. - Total operating expenses for Duke Energy Carolinas were $1,821 million, a slight increase of $18 million compared to the previous year [379]. Customer Growth - The average number of customers for Duke Energy increased by 2.0% year-over-year [380]. - The average number of customers for Duke Energy Progress increased by 1.9% in Q1 2025 compared to the prior year [391]. - The average number of customers increased by 1.8% year-over-year [411]. Regulatory and Legal Matters - The company is pursuing cost recovery for future expenditures related to EPA regulations on GHG emissions through normal ratemaking processes [353]. - Duke Energy's nuclear sites received renewed licenses allowing operation for an additional 20 years, with Oconee approved to operate through 2053 and 2054 [351]. - Duke Energy Ohio's anticipated passage of Ohio Substitute House Bill 15 will eliminate the Legacy Generation Rider, negatively impacting future recoverable losses from the Inter-Company Power Agreement with OVEC [354]. - The company is actively participating in legal challenges regarding new EPA regulations affecting GHG emissions and coal combustion residuals [430][431]. Cash Flow and Liquidity - Net cash provided by operating activities was $2,177 million, a decrease of $297 million from $2,474 million in the same period last year [421]. - Issuances of long-term debt increased by $1,011 million to $3,100 million compared to $2,089 million in the same period last year [428]. - As of March 31, 2025, Duke Energy had $475 million in cash on hand and $7.8 billion available under its Master Credit Facility [416]. - Duke Energy expects to have sufficient liquidity to support its funding needs through cash on hand, cash from operations, and available credit capacity [416]. Storm Recovery and Costs - The company anticipates storm cost recovery of approximately $1.1 billion over 12 months beginning in March 2025 due to significant storm damage from hurricanes Debby, Helene, and Milton [351]. - Operating revenues for the three months ended March 31, 2025, were impacted by a $102 million increase in natural gas costs and a $72 million increase due to base rate increases in North Carolina [413].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.76 for the first quarter of 2025, a 22% increase compared to the first quarter of 2024, driven by top line growth across electric and gas utilities [5][14] - The company reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [6][22] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates [14] - Gas Utilities and Infrastructure results were up $0.08 compared to last year, primarily due to new rates at Piedmont, North Carolina [14] - The Other segment experienced a decrease of $0.08, mainly due to higher interest expenses [14] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.8% compared to last year, aligning with the full-year projection of 1.5% to 2% [15] - Residential volumes rose over 3% in the quarter, reflecting customer growth and higher usage [16] Company Strategy and Development Direction - The company is focused on meeting growing energy demands through new generation and enhancing existing generation, including extending the operating license for the Oconee nuclear station for an additional twenty years [6][7] - A strategic partnership with GE Vernova was announced to secure up to 19 natural gas turbines, aimed at timely delivery of critical infrastructure [10] - The company plans to file a merger application for its DC and DEP utilities later this year, which is expected to create significant customer savings and operational flexibility [11][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing strong fundamentals and visibility to growth for years to come [12][13] - The company anticipates load growth to accelerate beginning in 2027 as economic development projects come online [16] - Management noted a cautious stance among industrial customers due to economic and policy uncertainties, but no immediate changes to production schedules were observed [61] Other Important Information - The company invested over $3 billion in capital during the quarter and is on track for $15 billion for the full year [20] - The impact of tariffs on the capital plan is estimated to be about 1% to 3% over five years, with confidence in minimizing this impact [21] Q&A Session Summary Question: Incremental CapEx opportunities - Management indicated that updates on capital expenditures will be provided in February, with a stable and growing investment pipeline [28][30] Question: Specificity around credit metrics - Management plans to provide more defined targeted ranges for credit metrics in the next cycle in February [33] Question: Cadence of adding signed deals - Management confirmed that the one gigawatt signed is part of a robust pipeline and is being actively worked through the process [40] Question: Financial implications of the merger - The merger is expected to generate over a billion dollars in savings for customers, focusing on operational efficiencies and reduced regulatory proceedings [51][52] Question: Size of one gigawatt signing - The one gigawatt signing involves two customers [55] Question: Outlook on tax credits and renewables - Management emphasized the importance of nuclear tax credits and their role in reducing customer bills, while advocating for their transferability [60] Question: Impact of economic uncertainty on industrial customers - Management noted a cautious stance among industrial customers but no immediate changes to their production schedules [61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.76 for the first quarter of 2025, a 22% increase compared to the first quarter of 2024, driven by top line growth across electric and gas utilities [5][14] - The company reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [6][21] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates [14] - Gas Utilities and Infrastructure results were up $0.08 compared to last year, primarily due to new rates at Piedmont, North Carolina [14] - The Other segment experienced a decrease of $0.08, mainly due to higher interest expenses [14] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.8% compared to last year, aligning with the full-year projection of 1.5% to 2% [15] - Residential volumes rose over 3% in the quarter, reflecting customer growth and higher usage [16] Company Strategy and Development Direction - The company is focused on meeting growing energy demands through new generation and enhancing existing generation, including extending the operating license for the Oconee nuclear station for an additional twenty years [6][7] - A strategic partnership with GE Vernova was announced to secure up to 19 natural gas turbines, aimed at timely delivery of critical infrastructure [10] - The company plans to file a merger application for its DC and DEP utilities, expected to create significant customer savings and operational efficiencies [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing strong fundamentals and visibility to growth for years to come [12][13] - The company anticipates load growth to accelerate beginning in 2027 as economic development projects come online [16] - Management noted a cautious stance among industrial customers due to economic and policy uncertainties, but no immediate changes in production schedules were observed [59] Other Important Information - The company invested over $3 billion in capital during the quarter and is on track for $15 billion for the full year [20] - The impact of tariffs on the capital plan is estimated to be about 1% to 3% over five years, with confidence in minimizing this impact [21] Q&A Session Summary Question: Incremental CapEx opportunities and guidance - Management indicated that updates on capital expenditures will be provided during the annual cycle in February, with a focus on a stable and growing pipeline of investment opportunities [26][28] Question: Specificity around credit metrics - Management acknowledged ongoing discussions about improving credit profiles and indicated that more defined target ranges would be provided in the next cycle in February [31][33] Question: Cadence of load growth and data center deals - Management confirmed that the pipeline remains robust, with a recent signing of one gigawatt of data center projects, which was anticipated in their plans [38][40] Question: Financial implications of the merger - Management highlighted that the merger of DC and DEP utilities could generate over a billion dollars in savings for customers, focusing on operational efficiencies and reduced regulatory proceedings [48][50] Question: Outlook on tax credits and renewables - Management emphasized the importance of nuclear tax credits in reducing customer bills and expressed support for ongoing advocacy in Washington regarding energy credits [57][58] Question: Impact of economic uncertainty on industrial customers - Management reported no immediate changes in production schedules from industrial customers but noted a cautious stance due to tariff policy uncertainties [59][60]

Core Insights - Duke Energy reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and up from $1.44 per share a year ago, representing an earnings surprise of 10.69% [1] - The company generated revenues of $8.25 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.33%, and an increase from $7.67 billion year-over-year [2] - Duke Energy shares have increased by approximately 12.1% since the beginning of the year, contrasting with a -3.9% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $7.35 billion, and for the current fiscal year, it is $6.32 on revenues of $31.81 billion [7] - The estimate revisions trend for Duke Energy is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Utility - Electric Power industry, to which Duke Energy belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q1 / 2025 Earnings Review and Business Update Harry Sideris / President and CEO Brian Savoy / Executive Vice President and CFO May 6, 2025 // 1 Safe Harbor statement FIRST QUARTER 2025 EARNINGS REVIEW AND BUSINESS UPDATE // 2 Safe harbor statement This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be ...